Limpopo agency intervenes in Great North Transport's pension fund scandal
Image: Mashudu Sadike
The Limpopo Economic Development Agency (LEDA) has announced plans to fast-track the payment of Great North Transport's (GNT) outstanding pension fund and medical aid contributions.
This decision comes after the DA laid criminal charges against GNT's board and management for failing to pay employees' pension and medical aid contributions.
According to LEDA Group Chief Executive Officer, Thakhani Makhuvha, the agency will step in to close the gap caused by non-payment of these employee benefits.
"We have taken an important decision, as GNT's shareholder, to make the necessary payments and bring all outstanding contributions up to date. We are hopeful this situation will not recur," Makhuvha stated.
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The crisis at GNT has left over 945 employees affected, with unpaid pension fund contributions totaling R6.78 million.
In some cases, employee membership has been suspended. If the default continues, employees risk permanently losing their pension benefits.
Additionally, 247 employees have been affected by unpaid medical aid contributions, totalling R3.21 million, with all medical aid coverage suspended.
The scandal affects even workers who have been with GNT since 1990. The company has had nine administrators since 1994, including Alexander Forbes, which administered GNT between 2010 to 2017.
Others included Moriting Wealth Managers and Lekana Employee Benefit Solutions. The Limpopo Treasury appointed BDO to probe the matter in 2020 after Make It Happen Foundation (Mihafo), a social and economic justice NGO, complained on behalf of affected employees in 2016.
The crisis has had a devastating impact on the affected employees' lives.
Patrick Kopane, a 69-year-old retiree, said: "I retired in 2003 and received R40 000 despite serving for a long time… Now I am struggling and have to hustle so I can feed my children."
Ravish Thela, who also retired from GNT, added: "They took the money from us, and they failed to take it to the funds. Today I'm suffering, all because of greed. I'm going to die this way without my hard-earned money."
The DA's provincial spokesperson for Economic Development, the Environment, and Tourism, Jacques Smalle, said that the crisis was a result of a much deeper rot at GNT, driven by years of corruption, mismanagement, and the absence of oversight or accountability.
"All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket. We urgently need a resolution to the plight facing GNT's employees, and we need to see real accountability and consequence management," Smalle said.
Makhuvha expressed concern over the non-payment issue and extended an apology to the affected employees, describing the situation as unfortunate and regrettable.
"While it is within the DA's right to pursue legal action, we want to assure the public that LEDA has been in continuous engagement with GNT to find a lasting solution to this matter," he said.
mashudu.sadike@inl.co.za
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